New suit challenges transfer portal damages
Briefly

New suit challenges transfer portal damages
"Former Georgia pass rusher Damon Wilson II says the school's athletic department is attempting to illegally punish him for entering the transfer portal in a lawsuit filed Tuesday, part of an ongoing dispute that could have far-reaching implications on how player contracts work in college sports. Wilson transferred last January to Missouri, where he was the team's leader in sacks during the 2025 season, weeks after signing a term sheet for a 14-month name, image and likeness contract with Georgia's booster collective."
"Georgia filed a lawsuit last month claiming that Wilson owed the athletic department $390,000 in liquidated damages for leaving the team. Wilson's countersuit, filed in Missouri state court, claims that Georgia has "weaponized" a liquidated damages clause in an unenforceable way to "punish Wilson for entering the portal." Many schools have inserted liquidated damages clauses in their contracts with athletes since starting to pay players directly earlier this year."
Former Georgia pass rusher Damon Wilson II transferred to Missouri after signing a term sheet for a 14-month, $500,000 name, image and likeness deal and receiving a $30,000 initial payment. Georgia sued, claiming Wilson owes $390,000 in liquidated damages for leaving the team. Wilson countersued in Missouri state court, alleging Georgia "weaponized" a liquidated damages clause to punish his entry into the transfer portal. Legal experts say schools have inserted such clauses but liquidated damages must reflect actual damages and cannot function as punitive buyouts. The case is an early test of enforceability and transfer deterrence.
Read at ESPN.com
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